The US Currency Is Still Under Pressure. Escalation of Trade Conflict Is in the Spotlight

The US dollar continues to decline against a basket of major currencies. On Friday, the US dollar index (#DX) closed the trading session in the negative zone (-0.11%). Investors are monitoring the trade conflict between the United States and China. Analysts believe the parties are unlikely to reach a deal before the US presidential election in 2020. A continuous conflict may lead to a recession in the global economy.

Statements by Donald Trump that he was not ready to conclude a deal with China added fuel to the fire. The September round of negotiations is also in doubt now. Official Chinese media say that China is ready for war with the United States, and the threat of introducing additional duties does not scare it. It also became known that the White House had decided not to issue licenses yet to American companies to work with the Chinese giant Huawei.

On Friday, weak economic data from the UK were also published. Thus, the UK GDP (q/q) decreased by 0.2% in the second quarter. UK GDP (y/y) grew by 1.2% in the second quarter, while experts expected growth by 1.4%. Manufacturing production decreased by 0.2% in June instead of the forecasted decrease by 0.1%. The British pound reached two-year lows against the US dollar. Canada published weak statistics on the labor market.

The "black gold" prices are falling after growth the day before. Currently, futures for the WTI crude oil are testing the $53.75 per barrel mark.

Market Indicators

On Friday, the bearish sentiment was observed in the US stock markets: #SPY (-0.68%), #DIA (-0.36%), #QQQ (-0.94%).

The 10-year US government bonds yield won back part of the losses. At the moment, the indicator is at the level of 1.70-1.71%.

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and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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